Supporting the 800 Trillion Won Semiconductor Push: Government Mobilizes Water, Power, and Land for Full-Scale Backing (Comprehensive)

National Briefing on the Vision for Advanced Industry Development in the Southwestern Region Held Today
President Lee: "Greater Seoul Faces Limits in Power and Water Supply... Gwangju and Jeonnam Are the Optimal Locations"
Semiconductor Special

President Lee Jae-myung is delivering a congratulatory speech at the National Report Meeting on the Development Vision of the Southwestern Advanced Industry held at the Kim Dae-jung Convention Center in Gwangju on June 30, 2026. Photo by Yonhap News

The government has announced the establishment of a Presidential Semiconductor Special Committee and the mobilization of key infrastructure resources, including water supply, electricity, land, and workforce, in order to support private investments in the southwest region's advanced industries, such as those planned by Samsung Electronics and SK hynix, totaling 896 trillion won. The government envisions creating a second semiconductor production hub outside the Seoul metropolitan area, through initiatives such as designating mega-special zones, developing corporate-type advanced cities, and providing national funding for essential infrastructure.

During his congratulatory address at the "Southwest Advanced Industry Development Vision National Report" held at the Kim Dae-jung Convention Center in Gwangju on June 30, President Lee Jae-myung stated, "The selection of this site was based on economic principles. The government will not merely issue permits; we will also provide railways, roads, power grids, and water supply, thus creating the most attractive environment for corporate investment."

President Lee emphasized, "In the Seoul metropolitan area, the existing power grid cannot accommodate additional supply, and the provision of water for daily use has reached its limit, making it impossible to build any more large-scale semiconductor plants. In contrast, Gwangju and South Jeolla Province have become the only regions that meet all the key conditions of power, water, and land."

He further stated, "If the concentration in the Seoul metropolitan area continues, the nation will be at risk. Efficient use of national territory and achieving balanced development are core tasks for a government that upholds popular sovereignty."

On this day, SK hynix, Samsung Electronics, and Amkor announced their investment plans for the southwest region and signed memorandums of understanding (MOUs) with the government. The investment scale amounts to 470 trillion won by SK Group, 425 trillion won by Samsung Electronics, and 1 trillion won by Amkor. SK hynix will establish two main semiconductor memory fabs and a 1GW artificial intelligence (AI) data center; Samsung Electronics will build two semiconductor memory fabs and a national AI computing center in the southwest region; and Amkor will expand its advanced packaging fab.

The government plans to foster the southwest region as the nation's second semiconductor production base, following the Seoul metropolitan area. The key measure is the establishment of a Presidential Semiconductor Special Committee, chaired directly by the president to oversee inter-ministerial support. The Ministry of Trade, Industry and Energy will also establish a Semiconductor Innovation Growth Support Team to devise detailed implementation plans aligned with each company's investment schedule. This team will manage the entire process of infrastructure development—including water and power supply, the creation of industrial complexes, and talent cultivation—and report to the Special Committee.

To establish a semiconductor production base, the government will also implement customized "S.WEST" support measures. Water will be supplied reliably using dams and recycled wastewater; electricity will be ensured through timely construction of power generation facilities and transmission networks; industrial complex development periods will be halved to under five years; and talent will be intensively nurtured through initiatives such as the Semiconductor Arm School and the Southern Region Semiconductor Engineering College.

Kim Jung-kwan, Minister of Trade, Industry and Energy, is announcing policy at the National Report Meeting for the Three Major Mega Projects held at the Blue House on the 29th, presided over by President Lee Jae-myung. June 29, 2026. Yonhap News

Kim Jonggwan, Minister of Trade, Industry and Energy, stated, "Now that companies have decided to invest, it is time for the central and local governments to respond. The government will not stop until the new heart of Korean industry beats strongly, with the Semiconductor Special Committee and the Innovation Growth Support Team at the core." He added, "The central and local governments will take joint responsibility for the supply of infrastructure such as power and water."

The government is also accelerating efforts to improve the investment environment. After enacting the Mega Special Zone Act, at least one mega-special zone will be designated in the southwest region, with all relevant regulations streamlined. The government will provide up to 100% financial support for infrastructure development costs, including power and water supply. Additionally, the introduction of a regionally differentiated tax system for companies and workers is being considered to encourage local investment and settlement.

In particular, the Ministry of Land, Infrastructure and Transport will develop "corporate-type advanced cities" linked to corporate investments, integrating industrial complexes, residential areas, education, and transportation. A fast-track system will be applied to simultaneously proceed with permits, compensation, and design, dramatically shortening the time required to establish industrial complexes. Innovation hubs will also be created in collaboration with Chonnam National University Campus Innovation Park and the Gwangju Urban Convergence Special Zone. Expansion of transportation infrastructure, such as the Honam High-Speed Railway, Muan Airport, and metropolitan road networks, will be pursued in parallel.

Kim Yoon-duk, Minister of Land, Infrastructure and Transport, remarked, "The most important factor in corporate investment is speed. We will supply industrial complexes according to companies' schedules and develop 'job-residence-leisure' cities equipped with housing, education, healthcare, and cultural facilities." He added, "The Ministry will prove that companies gain greater competitiveness by investing in local regions."

Nojeong Kwak, CEO of SK Hynix, is presenting investment plans at the Southwest Advanced Industry Development Vision National Report held at the Kim Dae-jung Convention Center in Gwangju on the 30th, hosted by President Jae-myung Lee. Photo by Yonhap News

Each investing company cited the increasing demand for memory in the AI era and the locational competitiveness of the southwest region as the reasons for their investments. Nojung Kwak, CEO of SK hynix, stated, "In the AI era, memory has become the essential infrastructure determining performance. The Yongin cluster alone cannot meet future demand, so a new semiconductor cluster is necessary." He continued, "By building two main fabs and a 1GW AI data center in the southwest region, we will create a new industrial ecosystem that combines semiconductor production and AI computing."

Jeonghyeon Jun, Vice Chairman of Samsung Electronics, explained, "As future semiconductor demand is increasing much faster than anticipated, the timeline for establishing a new production base after Yongin has been accelerated. After comprehensive review of electricity, water, human resources, and living conditions, Gwangju was judged to be the optimal location." He added, "We plan to build two memory fabs in Gwangju and a national AI data center in Haenam Solaseado. We hope that the promised one-stop administrative support and stable supply of power and water from the government will proceed smoothly."

Jinan Lee, CEO of Amkor Korea, recalled, "Thirty years ago, there was significant internal opposition when we decided to invest in Gwangju, but now the Gwangju plant has become the company's core production base. We will invest 1 trillion won to expand our advanced packaging plant and create more than 1,000 new jobs." He continued, "While Samsung and SK are designing the future, Amkor is already realizing it. We hope this investment will mark the starting point for Gwangju to become the center of the advanced packaging cluster."

President Lee defined this project as not merely an industrial investment, but as a turning point for the nation's balanced development strategy. President Lee stated, "If the concentration in the metropolitan area continues, the nation will not be sustainable. The government will ensure that companies find investing in the southwest region to be more advantageous, by taking responsibility for infrastructure and financial support."

He added, "This is not a political performance, but something we will demonstrate through actual execution. I will personally oversee financial support, infrastructure construction, education, culture, and living conditions, and directly check how quickly these measures are implemented."

This content was produced with the assistance of AI translation services.